London Daily

Focus on the big picture.
Monday, Oct 20, 2025

"The Money Is Here": COP26 Banks On Boosting Climate Finance

"The Money Is Here": COP26 Banks On Boosting Climate Finance

Cost estimates vary but it is thought that it will take between $3-4 trillion annually -- around 2 percent of global GDP -- to reach net-zero by mid-century.

How can the world find the cash to limit global warming to liveable levels and completely decarbonise the economy within 30 years? That's the $100-trillion-dollar question.

Cost estimates vary but it is thought that it will take between $3-4 trillion annually -- around 2 percent of global GDP -- to reach net-zero by mid-century.

Financiers and governments at the COP26 summit believe they have found a way to come up with enough.

"The money is here if the world wants to use it," said UN climate finance envoy Mark Carney, who has overseen the creation of a vast alliance of banks and funds that say their portfolios are ready for net-zero investments.

The Glasgow Financial Alliance for Net Zero (GFANZ) represents assets worth $130 trillion, which Carney and others said it could be mobilised to pay for the world's transition to carbon neutrality.

Its institutions will work towards cutting emissions by 50 percent by 2030, will need to report on progress every year and submit enhanced funding plans every five.

"We now have the essential plumbing in place to move climate change from the fringes to the forefront of finance so that every financial decision takes climate change into account," Carney said.

Finance is a fundamental part of climate action, in theory freeing up developing countries' national budgets and helping them build green infrastructure.

But a historic lack of money from rich emitters has hampered nations' plans.

"We're very engaged in climate action. But finance is a fundamental problem, and it will determine the delivery of our promises," said Indonesian finance minister Sri Mulyani Indrawati.

"We don't need $130 trillion, just $270 billion!" she said, referring to the estimated annual cost of her country decarbonising by mid-century.

The Glasgow funding initiative also raised the hackles of environmental groups, who pointed out that it left the door open for the funds involved to continue investing in fossil fuels.

"More than $130 trillion and not a single rule to prevent even one dollar from being invested in the expansion of the fossil fuel sector," said Lucie Pinson, executive director of the Reclaim Finance initiative.

The alliance has no set limits on carbon "offsets" to reduce net emissions and does not impose targets on indirect emissions.

 'Marathon'


Fossil fuel investment by large banks has risen significantly since the 2015 Paris Agreement was signed.

But finance is waking up to the need to diversify away from dirty energy or risk stranding major assets such as coal mines or gas pipelines that get mothballed before their lifespan expires.

"We're seeing a big change in private finance sector, who is realising that climate risks are important for their portfolios," UN climate chief Patricia Espinosa said Wednesday.

Espinosa also hinted that the feted $100-billion-a-year figure -- promised by rich nations more than a decade ago to help vulnerable nations prepare for climate impacts -- would likely be met by 2022.

But even that would be a drop in the ocean of what is needed to decarbonise the global economy.

US Treasury Secretary Janet Yellen stressed the role private finance was likely to play.

"The private sector is ready to supply the financing to set us on a course to avoid the worst effects of climate change," she said.

But the proof will be in how quickly -- and how much -- these initiatives deliver to countries requesting assistance.

Lorena Gonzalez from the World Resources Institute said there had been "encouraging signs" for climate finance at COP26.

"It's crucial these finance reach the countries in 2022 and not in five years or later," she said.

Simon Stiell, Grenada's minister for Climate Resilience, said that the funding potential of the Glasgow alliance to keep the 1.5C temperature goal in reach was akin to a "marathon".

"The sprint is adaptation, to adapt to 1.1C", the amount Earth has already warmed, he said.

Newsletter

Related Articles

0:00
0:00
Close
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
×